PayU IPO

About PayU IPO

While there was much buzz about payment solutions provider PayU coming out with its IPO sometime in 2025, it has been postponed to 2026 due to the increase in the company’s losses. This is the third time PayU has deferred its IPO plans having previously delayed from H2 2024 and then from 2025. It must be noted that the company has been looking to get listed on exchanges since late 2023. The IPO is now expected to hit the market somewhere around the second half of 2026. PayU is in early-stage discussions to raise $250–$300 million through a pre-IPO minority stake sale, with HSBC appointed as its banking partner, to gauge investor appetite and set a valuation benchmark ahead of the listing. Prosus, the major owner of PayU, has been targeting valuation in the range of $4.2 billion to $5 billion, revised downward from the earlier target of $5 billion to $7 billion.

PayU, owned by Prosus, is a payment solutions provider offering online and offline transactions through various payment options, including QR, UPI, BNPL and wallets, among others. In India, PayU serves more than 4,50,000 merchants with more than 100 payment methods. It is one of the preferred payment partners for e-commerce merchants and airline businesses.

Objectives of PayU IPO

Here are some of the key objectives of the PayU IPO

• Investing in expanding its payment franchise
  
• Invest in the BNPL business as funding support
  
• Invest in strengthening the technology stack
  
• Giving an exit to early investors through the OFS
  
• Get better market valuation currency through listing
  
• For meeting other corporate expenses and issue related expenses
  

Industry Outlook

India has evolved as a global leader in fast payments. At the heart of this transformation is the Unified Payments Interface, or UPI, launched by the National Payments Corporation of India. According to a PwC report, India's digital payments industry is witnessing a high surge, with transaction volumes growing by 42% year-on-year in FY 23-24. The report projects the industry to experience threefold growth, with transaction volumes rising from 159 billion in FY 23-24 to 481 billion by FY 28-29. Company Information

PayU belongs to the payments and fintech business of Prosus, which is one of the largest technology investors in the world. Providing payment gateway solutions to online businesses through its cutting-edge technology, PayU serves more than 4,50,000 merchants in India. It has over 100 payment methods and is highly preferred by e-commerce companies and airline businesses.

Strengths of PayU

Here are some of the key strengths of PayU

• Strong merchant presence in India with a reach of over 5 lakh merchants
  
• Seamlessly integrates its payment gateway and its credit offerings (Lazypay, PaySense)
  
• Supports over 150 payment methods online; including UPI, debit cards, credit cards, EMIs, BNPL, digital wallets etc.
  
• Direct integration with financial institutions ensures quick checkout and high transaction success rate
  

Risks of PayU

Here are some of the risks of PayU.

• Data Security risks continue to be high for PayU considering the nature of client business
  
• Merchant frauds leads to several requests for invalidation of transactions
  
• Failure rate and cart abandonment rates can be as high as 40% at times.
  
• Onboard process at PayU continues to be very complex and time consuming
  
• Regulatory and compliance risk continue to be high in this business
  
• RBI restrictions are quite common if they feel integrity of financial system being impacted
  
• Rise of AI and systems like Mythos pose a major risk to companies like PayU
  

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: TBA
  
• Book Running Lead Manager: Goldman Sachs, Morgan Stanley, Bank of America (Advisors)
  

Business Model

PayU primarily earns revenues from the payments gateway commission it charges merchants for processing digital payments. It also undertakes credit business and earns interest from loans disbursed. PayU ventured into the credit space through the launch of LazyPay in 2017. In 2025, PayU acquired a 43.5% stake in Mindgate Solutions, reinforcing its capabilities in real-time payment technology and its role in the UPI payments ecosystem

Company Growth Trajectory

The company's revenue from operations saw a jump of 22.8%, from ₹4527.30 crores in FY 24 to ₹5563 crores in FY 25. It managed to cut net losses by 42% to ₹248.1 crores in FY 25 from ₹429.5 crores in FY 24.

Market Position

PayU is one of the leading payment solutions providers in India. Trusted by over 4.5 lakh merchants to power their growth, PayU offers more than 100 payment methods. It has recently received a fresh capital infusion of ₹302 crores from MIH Payments Holdings.

How to Check Allotment Status of PayU IPO?

1. Visit the Registrar’s Website

Visit the registrar’s website and click on the IPO allotment status link. Input your application number or DP ID or PAN and click on ‘Submit’ to know the IPO allotment status.

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of PayU IPO. Go to the NSE website and find the ‘Invest’ tab. Click on ‘Verify IPO Bids’ under ‘Resources & Tools’.

On the NSE IPO bid verification page, enter:

• Company name from dropdown
  
• Application number
  
• PAN
  

Then click ‘Submit’ to know the allotment status.

3. Check on BSE Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the ‘Investors’ tab. Under ‘Investors’, click on ‘IPO’. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select ‘Equity’ from the dropdown menu
  
• Choose ‘PayU’ in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click 'Search’ to know allotment status
  

How to Apply for the PayU IPO?

To apply for this IPO:

• Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.